Tool and equipment manufacturer Sandvik reported third-quarter pretax earnings above market expectations last week, but said it was cutting costs in response to a recent drop in demand.
The Swedish company posted a pre-tax profit of 3.04 billion Swedish crowns (about U.S. $393 million), down from 3.1 billion crowns a year ago. Third-quarter sales increased to 22.5 billion crowns, compared with 21.2 billion crowns in the same period last year.
Sandvike CEO Lars Pettersson said the company planned to cut 900 jobs in its Materials Technology division and is considering cuts in its Tooling and Mining and Construction divisions as well.
Sandvik added that its earnings were hurt by a fall in metal prices, lowering the value of the metals it holds in stock in the third quarter.